Convergence, Dynamics, and Geography of Economic Growth: The Case of
Municipalities in Rio Grande do Norte, Brazil
Analyses of municipal GDP growth in Rio Grande do Norte in the Northeast of Brazil during 1970-96 reveal that the cross-section dispersion of per capita income increased over time. The authors reveal that although the analysis indicates some spatial dependence in income, it is small and has a downward trend, indicating that the growth path is only weakly determined by geographical links in Rio Grande do Norte.
Link
http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/06/15/000009486_20040615121905/Rendered/PDF/wps3302convergence.pdf